After reaching $0.956 a month ago, the value of Arbitrum [ARB] has been under continuous downward pressure. The altcoin recently hit a new low of $0.37, signaling a significant decline in its value.
Despite this low point, there has been a slight recovery in ARB’s value. Currently, Arbitrum is trading at $0.459, showing a 6.38% increase on daily charts.
Over the past week and month, ARB has faced a downward trend, with declines of 20.11% and 38.9%, respectively.
The continuous decline in the value of ARB has had a drastic impact on its holders, resulting in significant losses for many of them.
No Profitable Arbitrum Holders in Sight
According to an analysis by CryptoCrypto using IntoTheBlock data, the recent decline in price has pushed all ARB holders into a loss-making position.
Currently, none of the Arbitrum holders are making any profit, with 99% of holders facing losses and only 1% breaking even.
This situation indicates that holders are quick to sell whenever there is a slight price increase, fearing further losses in the future.
This cycle of panic selling could lead to a lack of confidence among holders, potentially resulting in a massive sell-off and a crash in ARB’s value.
Diving Deeper into the Arbitrum Market
With no profitable ARB holders, the market sentiment for the altcoin is extremely bearish, with sellers dictating the market dynamics and driving prices down.
The decline in ARB’s Chaikin Money Flow (CMF) to -14 indicates a seller-dominated market where selling pressure outweighs buying pressure consistently, leading to further price drops.
Moreover, Arbitrum’s Sharpe ratio has dropped to -5.49, suggesting that the returns on ARB are below the risk-free rate. This makes the token less appealing to investors, resulting in a decreased demand.
Furthermore, large ARB holders, known as whales, have increased their selling activity, offloading over 550.2k ARB tokens in a single day. This massive sell-off implies that whales lack confidence in the market and anticipate further price declines.
Overall, the heightened selling activity and increased inflows of ARB tokens into exchanges signify strong bearish sentiment among market participants.
Future Outlook for Arbitrum
As Arbitrum continues to plummet to record lows, with no holders in profit, investor confidence is decreasing rapidly. The prevailing bearish sentiment may push ARB’s value even lower in the near future.
If this downward trend persists, ARB could drop to $0.42, potentially setting a new all-time low. Conversely, a reversal could occur if buyers seize the opportunity to purchase at the current dip, leading to a possible recovery and a return to $0.5.